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Loonie hits 2-week low as coronavirus curbs weigh on sentiment

Published 2020-07-14, 09:42 a/m
© Reuters.
USD/CAD
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CL
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CA10YT=RR
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* Canadian dollar dips 0.1% against the greenback

* Loonie touches its weakest since June 30 at 1.3646

* Price of U.S. oil falls 1.8%

* Canadian bond yields were mixed across a flatter curve

TORONTO, July 14 (Reuters) - The Canadian dollar weakened to a two-week low against the greenback on Tuesday as efforts to curb rising coronavirus cases in the U.S. and Asia weighed on investor sentiment and ahead of a Bank of Canada interest rate announcement on Wednesday.

Global stocks slipped and the price of oil, one of Canada's major exports, fell as simmering Sino-U.S. tensions and new coronavirus restrictions in California kept a lid on optimism as earnings season got underway. crude CLc1 prices were down 1.8% at $39.38 a barrel, while the Canadian dollar CAD= was trading 0.1% lower at 1.3621 to the greenback, or 73.42 U.S. cents. The currency touched its weakest intraday level since June 30 at 1.3646.

The Bank of Canada is expected to leave its benchmark interest rate at a record low of 0.25% on Wednesday. Investors may focus on the central bank's updated economic outlook and be alert for potential guidance on the bank's bond-buying program. government bond yields were mixed across a flatter curve, with the 10-year CA10YT=RR down less than one basis point at 0.527%.

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